Q1) As per the Indian Companies Act, a company can either be private or public.

Private companies are the ones in which the minimum paid-up share capital has to
be Rs. _____lakh.
 6
 4
 2
 1 (Rs. 1 lakh ANSWER)

Q2) Which of the following can, therefore, be defined as the process of

identifying, measuring, recording, and communicating the required
information relating to the economic events of an organisation to the
interested users?

The answer choices are:

 Accounting (ANSWER)
 Book Keeping
 Ledger
 Trial Balance

Q3) ________method-income is recorded when it is received, and expenses

are recorded when they are paid.

The answer choices are:

 Delphi
 Accrual (ANSWER)
 Income
 Cash

Q4) __________is a financial metric that is the difference between a company's

current assets and current liabilities.

The answer choices are:

 Capital
 Paid Up Capital
 Working Capital (Answer)
 Financial Assets

Q5) In 1974, a study group under the chairmanship of _____ was constituted
for framing guidelines for commercial banks for follow-up & supervision of
bank credit to ensure proper end-use of funds.

The answer choices are:

  O.K.L. Agarwal
 Mr. P. L. Tandon (ANSWER)
 C.L.Tandon
 O.P. J. Nayak

Q6) The P. J. Nayak committee was set in ______

Answer : January 2014

Q7) The _________includes all current assets, including assets that may not
be easy to convert into cash, such as inventory.

The answer choices are:

 Current Liability Ratio

 Current Assets Ratio
 Current Ratio (Answer)
 Quick Ratio

Q8) The Working Capital Cycle formula is___________.

 Inventory Days + Receivable Days - Payable Days = Working Capital

Cycle in Days (Answer)
 Inventory Days + Receivable Days + Payable Days = Working Capital Cycle
in Days
 Inventory Days - Receivable Days - Payable Days = Working Capital Cycle in
Days
 Inventory Days - Receivable Days + Payable Days = Working Capital Cycle in
Days

Q9) _______ identifies activities in an organisation and assigns the cost of

each activity to all products and services.

The answer choices are:

 Activity-Based Cost Accounting (Answer)

 Time-Based Cost Accounting
 Financial Accounting
 Management Accounting

Q10) _________is an internal document that a company uses as supporting

evidence for accounting entries. Businesses treat it as a redeemable transaction
bond as it has a monetary value and is helpful in specific cases.

 Ledger
 AOA
  Memorandum
 Voucher (Answer)

Q11) We record the return of goods purchased in the________

 Cash Book
 Purchase Return book (Answer)
 Balance Sheet
 Personal Account

Q12) We record all the acceptance of the bills in our favour in the________

 Bills Receivable Book (Answer)

 Journal
 Cash Book
 Purchase Return book

Q13) _________includes accounts of all expenses, losses, incomes and gains.

 Nominal Accounts (Answer)

 Tangible real Accounts
 Intangible real Accounts
 Real Accounts

Q14) ______are books of Original Entry. They are also known as Day Books or
special journals.
 Subsidiary Books
 Ledger
 Journal (Answer)
 Balance Sheet
Q15) A debit is an entry that__________
 Increases an asset or expense account
 Decreases liability, equity, or revenue account
 Debits come first and go into the left side of the journal entry.
 All of the above (Answer)
Q16) _____transactions is the process of recording and tracking any transaction that
your business performs.
 Journalizing (Answer)
 Real Accounts
 Nominal Accounts
 Valuation Accounts
Q17) _____is referred to as the procedure of revising mistakes made in recording
transactions.
  Rectification of errors (Answer)
 Errors
 Emission of errors
 Reduction of errors
Q18) The expired cost of any fixed asset means_______
 Unearned Income
 Earned Income
 Fixed Cost
 Depreciation (Answer)
Q19) _____comprises the purchase price of the fixed asset and the other costs
incurred to put the asset into working condition.
 Future value
 Salvage value
 Cost of the assets (Answer)
 Cost of loan
Q20) _______are recorded at the end of a reporting period to put a firm's financial
statements in conformance with the applicable accounting framework.
 Adjusting Entries (Answer)
 Depreciation
 Depreciation Accounting
 Journal Entries
Q21) The balance in an unearned rent account at the end of an accounting period
represents_
 An asset
 An expense
 A contingent liability
 A liability (Answer)
Q22) Outstanding expenses represent the______
 Assets
 Liabilities (Answer)
 Profitability
 Return
Q23) ______is a special account that a firm prepares to show the distribution of
profits/losses among the partners or partner's
 Retained Earnings
 Income Statement
 Pension Fund Liability
 Profit and Loss Appropriation Account (Answer)
Q24) Statement of______ reflects the distribution of profit between retained earnings
and dividends.
 Income Statement (Answer)
 Retained Earnings
 Financial statement analysis
 Cash Flow
Q25) _______calculates the net profit or loss, which is determined by sales revenue,
expenses, and general ledger records.
 Income Statement (Answer)
 Financial statement analysis
 Retained Earnings
 Cash Flow
Q26) ________represents the value that has already been paid for, such as
insurance, advertising contracts, or rent.
 Accounts receivable
 Prepaid expenses (Answer)
 Cash and cash equivalents
 Marketable securities
Q27) _____ are due within one year and are listed in order of their due date.
 Deferred Tax Liability
 Current Liability (Answer)
 Retained Earnings
 Shareholder Equity
Q28) Profitability is measured with________
 Financial statement analysis
 Income statement (Answer)
 Cash flow
 Balance sheet
Q29) _____is also called a profit and loss statement or a "P&L," an income
statement lists your income, expenses, and net income (or loss)
 Profit and Loss Appropriation Account
 Income statement (Answer)
 Long-term debt
 Pension fund liability
Q30) _____is the benefits of an alternative given up when one decision is made over
another.
 Controllable cost
 Sunk cost
  Fixed cost
 Opportunity cost (Answer)
Q31) The main function of a cost centre is to track_______
 Money
 Income
 Revenue
 Expenses (Answer)
Q32) ____is debt obligations on invoices processed as part of the operation of a
business that is often due within 30 days of receipt.
 Dividends payable
 Earned and unearned premiums
 Accounts payable (Answer)
 Customer prepayments
Q33) ____are historical costs that have already been incurred and will not make any
difference in the current decisions by management.
 Sunk cost (Answer)
 Fixed cost
 Controllable cost
 Variable cost
Q34) ______group people, equipment, and activities that engage in a singular
commonly-themed activity.
 Personal/People Cost Centre
 Operational Cost Centre (Answer)
 Product Cost Centre
 Project Cost Centre
Q35) _________ is a department or function within an organisation that does not
directly add to profit but still costs the organisation money to operate.
 Controllable cost
 Sunk cost
 Cost centre (Answer)
 Fixed cost
Q36) ______is the amount of sales which generates profit.
 Margin of Safety
 Break Even Point (Answer)
 Production function
 Cost function
Q37) ___________be referred to as a research and development centre; a product
cost centre aggregates the costs associated with developing, constructing, and
bringing a product to market.
 Personal/People Cost Centre
 Product Cost Centre (Answer)
 Operational Cost Centre
 Impersonal/Machinery Cost Centre
Q38) _____are cost advantages reaped by companies when production becomes
efficient.
 Break Even Point
 break analysis
 Economies of scale (Answer)
 Monopoly
Q39) Break-even Sales Volume=
 Fixed Cost/Contribution Margin (Answer)
 Fixed Cost/Contribution Margin -1
 Fixed Cost/2*Contribution Margin
 None of the above
Q40) ________is a volume of sales where there is neither loss nor profit.
 Break-even point (Answer)
 Break analysis
 Break-even analysis
 Volume analysis
Q41) __________are the undistributed profits of the company commonly used by
established companies for financing their long-term requirements, known as
"Ploughing Back of Profits". It is an internal source of finance.
 Retained cost
 Retained earning (Answer)
 Retained profits
 Cost
Q42) Investment can be defined as
 Use of capital on assets to receive returns
 Net additions made to the nation's capital stocks
 Usage of money on the production process of products and services
 All of the above (Answer)
Q43) The importance of financial management can be assessed by taking a look at
its core mandate, which includes_________
 Availability of sufficient funds
  Maintaining a balance between income and expenses to ensure financial
stability.
 Ensuring efficient and high ROI
 All of the above (Answer)
Q44) _________is money that is borrowed and must eventually be repaid---usually
with interest.
 Cost of capital
 Debt capital (Answer)
 Share capital
 All of the above
Q45) ___shares carry preferential rights in respect of payment of dividends and
repayment of capital in case of winding up of the company before paying the
dividend to the equity shareholders.
 Equity share
 Preference share (Answer)
 Both A and B
 Debentures
Q46) ______refers to the securities which are sold in public stock exchanges and
which can be liquidated easily.
 Marketable securities (Answer)
 Receivables
 Credit policy
 Inventory management
Q47) _________is the time it takes to convert net current assets and current
liabilities (e.g. purchased stock) into cash.
 Working capital
 Working capital cycle (Answer)
 Short working capital cycle
 Long working capital cycle
Q48) In the____, the cost per share of preferred stock may be divided into the
proceeds received from its sale and the dividends paid to its owners.
 Cost of equity share capital
 Cost of capital
 Cost of preference share capital (Answer)
 Cost of share capital
Q49) The ______ is the expected required or actual rate of return on the firm's equity
share capital, which, if earned, will leave the market value of the share unchanged.
 Cost of equity share capital (Answer)
  Cost of capital
 Cost of preference share capital
 None of the above
Q50) A ______comprises its shareholders, creditors, customers, employees,
government and society.
 Shareholder
 CEO
 Stockholder
 Stakeholder (Answer)
Q51) The ___________ may be derived by using a formula that equates the present
value of the expected future receipts with the cost of the project.
 Cost of equity share capital
 Cost of capital (Answer)
 Cost of preference share capital
 Cost of debt capital
Q52) The ______ may be referred to as capital budgeting techniques or investment
criteria.
 Investment decision rule (Answer)
 Decision rule
 Expenditure decision rule
 None of the above
Q53) A significant decline in general economic activity extending over a period of
time is_______
 Depression
 Recovery
 Recession (Answer)
 Expansion
Q54) ______represents the steady growth lien or the growth of the economy when
there are no business cycles.
 Expansion
 Trend (Answer)
 Peak
 Depression
Q55) ______represents the steady growth lien or the growth of the economy when
there are no business cycles.
 Expansion
 Trend (Answer)
 Peak
  Depression
Q56) ___is the applicant's debt-to-income (DTI) ratio.
 Cycle
 Capacity (Answer)
 Character
 Capital
Q57) Which of the following represents the amount utilised at the time of
contingencies?
 Net working capital
 Reserve Working Capital (Answer)
 Extra working capital
 Fixed working capital
Q58) ______ working capital refers to the difference between current assets and
current liabilities.
 Distinctive
 Net (Answer)
 Zero
 Cumulative
Q59) _____ are the purpose of the loan, the amount involved, and prevailing interest
rates.
 Character
 Capital
 Collateral
 Conditions (Answer)
Q60) ________ varies inversely with profitability.
 Liquidity
 Revenue
 Assets
 Risk (Answer)
Q61) ________ is the monitoring and maintaining of cash flow to ensure that a
business has enough funds to function. Investments, bill payments, and unexpected
liabilities can affect a business' inflows and outflows and, in turn, its cash
management.
 Inventory Management
 Business Management
 Cash Management (Answer)
 Working Capital Management
Q62) Residual dividend policy is also highly________.
  Flexible
 Liquid
 Volatile (Answer)
 Different
Q63) _______ is a core function of supply chain management, involving the planning
and execution of supply chains to meet the material requirements of a company or
organisation.
 Material Management (Answer)
 Inventory Management
 Business Management
 Receivable Management
Q64) The more assets a company has amassed, the more sales and potential profits
the company may _______
 Generate (Answer)
 Loose
 Gain
 None of the above
Q65) The primary drawback of the __________ is that investors may not see a
dividend increase in boom years.
 The dividend valuation model
 Constant Dividend Policy (Answer)
 Stable Dividend Policy
 Residual Dividend Policy
Q66) A business needs to make a profit to keep its doors open in the ________.
 A short run of 2 years
 Short run
 Long run (Answer)
 Both B and C
Q67) PO is the ex-dividend ________value.
 Face Value
 Intrinsic Value
 Par Value
 Market Value (Answer)
Q68) Gross profit margin is one of the most widely used profitability or _____
ratios.
 Cost Equity
 Margin
 Profitability (Answer)
  Debt Equity
Q69) ____ratios indicate how efficiently a company generates profit and value for
shareholders.
 Equity
 Acid test
 Debt equity
 Profitability (Answer)
Q70) ______ means page number in the ledger.
 Ledger Folio (Answer)
 Ledger Number
 Page Number
 Ledger Count